According to Rightmove, the average asking price has risen by 2.1% in April and by 5.1% year on year to reach a record high £327,797.
The increase of £8,733 was only the second time in five years that prices have jumped by more than 2% in a month.
Properties are selling at their fastest rate on record, with the average time from listing to an offer being agreed reducing to just 45 days in April, and almost one in four properties that had a sale agreed in March had been on the market for less than a week, which is the highest rate ever recorded.
Vik Roda, CEO and Founder of Mortgagez said: “It’s a huge jump, especially bearing in mind that the lockdown restrictions have limited all of our movement around the country.”
Why has there been such a big rise in house prices?
The demand from the public is massive at the moment, which is mainly due to the recent stamp duty holiday, the low interest rates banks and building societies are offering and the changes in people’s working patterns. As of 2019, there were 1.3 million people working from home. Fast forward two years to 2021 and 60% of the UK’s adult population is currently working from home.
The dreary five day a week commute for many is now over, and this has led to areas outside of London becoming some of the most in demand!
The recent stamp duty holiday is of course another factor which has stimulated the surge of activity in the market, with many wanting to take advantage of the potential savings, with some even saving up to as much as £15,000 in tax.
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PLEASE NOTE: Article written 21st April 2021. Information contained within this article is likely to change and therefore should not be relied upon or form part of any form of decision making without seeking professional advice. *
YOUR HOME MAY BE REPOSSESSED IF YOU DON’T KEEP UP REPAYMENTS ON YOUR MORTGAGE
Any guidance and/or advice contained within this document is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. Any technical or regulatory information contained within this document was correct at the time of producing it but as it may be subject to change it should not be exclusively relied upon when making a financial decision. The Financial Conduct Authority does not regulate advice on Buy to Let mortgages.
Article written: April 2021 060121 MZ000190
